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UCaaS VS VoIP: What's Best For Business Communication?

The "UCaaS vs VoIP" debate is a hot topic in the world of business communications.

As we move away from legacy systems to embrace cloud communication solutions, the race is on to find the solution that best fits our unique business needs. Two of the most popular options are UCaaS and VoIP, both of which support remote working and facilitate better customer experiences.


UCaaS and VoIP technologies are invaluable to the collaborative, customer-centric business. Both solutions boast advanced call management and routing features like call recording, IVR, and call analytics. However, their significant differences set them apart, making each solution more suited to specific business models. Rest assured there is a solution for your business whether you run an IT Staffing Agency or a sales call center.

So, in the battle of UCaaS vs VoIP, which solution should you choose?

What is VoIP?

Voice over internet protocol (VoIP) has become the global standard for modern business communications. It's the technology that allows you to make calls over an internet connection rather than the physical wired PSTN.

Put simply, VoIP uses packet-switching technologies to convert your voice signals into digital signals. These digital signals are compressed, transmitted over the internet, and delivered to the recipient in a matter of seconds with the same flawless audio you'd expect from a traditional landline.

VoIP enables users to make calls from any location, on any device, without incurring high costs. While most providers do still charge for international calling, rates are much lower than traditional fees. Other than that, your total VoIP phone cost will be made up of nothing but your monthly subscription fee.

No expensive hardware costs, maintenance, or overheads required. In fact, you don't even have to purchase specialized VoIP phones-it's much more cost-effective to simply turn your PC, laptop, or smartphone into a softphone.

Common VoIP features include:

  • Voicemail to email
  • Intelligent call routing
  • Call monitoring, call whisper, and call barge
  • Call recording and call monitoring
  • Interactive voice response (IVR) systems

What is UCaaS?

Unified communications as a service (UCaaS) goes beyond the provision of voice calling. It unifies multiple communication channels-including video conferencing, SMS, instant messaging, email, and VoIP-into a singular, centralized platform.

Say your team is struggling to communicate complex ideas via instant message. UCaaS enables them to jump on a video call or use free webinar tools without having to leave the platform. Or, say your customer service agent is chatting with a frustrated customer via email. In one click, they can call the customer and attempt to resolve their issues more empathetically and efficiently.

Why Has UCaaS Become So Popular?

Thanks to its rich multifunctionality and scalability, UCaaS is quickly becoming the future of business communications.

With more device agnosticism than VoIP, UCaaS is designed to empower the modern remote workforce. Regardless of their location, employees can leverage a suite of communication tools to their full potential, amplifying collaborative productivity. And, with customer preferences in a state of constant flux, an omnichannel-first approach to customer communications is essential for keeping up with demands.

Creates Better Customer Experiences

Customers don't just want to interact with brands via telephone. A recent survey by GetApp shows that online live chat is the preferred customer service channel. This is followed by telephone, email, in-person service, and social media.


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UCaaS doesn't just let you communicate with customers on their preferred channel. It lets you deliver fully omnichannel experiences across these channels. UCaaS consolidates multiple channels into one platform, meaning that businesses can meet customers at every touchpoint with streamlined, consistent customer service.

They can also enhance personalization thanks to native CRM integrations. CRM integrations provide customer service teams with immediate and centralized CRM data, empowering teams to resolve issues faster and build better customer relationships.

Make sure you choose a UCaaS provider that supports popular third-party app integrations like Salesforce and Google Workspace. If you're building your own software and want it to integrate with your UCaaS platform, ensure that you include the specifications in your software development agreement.

Enhances Team Collaboration and Productivity

One of the standout benefits of UCaaS is its enhanced collaboration capabilities. UCaaS boasts everything from real-time file-sharing and simultaneous co-editing to shared calendars, digital whiteboards, screen-sharing, and more.

Combined with the ability to communicate on different channels via one centralized VoIP app, remote teams can collaborate just as productively as if they were in the office.

Increased Self-Service

Unlike VoIP, which is only capable of telephone-based self-service, UCaaS enables self-service to be applied across multiple channels. From automated emails to chatbots and conversational AI, businesses can utilize automation and self-service technologies across web, social media, and SMS.

For your customer service team, omnichannel self-service frees up phone lines and improves workflows, processes and procedures. Instead of becoming inundated with trivial issues-which are often the most tedious to handle-agents can spend more time handling complex issues. And, without the pressure of long queues, they can attend to these issues more thoroughly and personably.

For your customers, self-service is particularly beneficial. With the ability to resolve issues themselves, your customers can avoid long wait times and achieve faster resolutions. It's no surprise that 81% of customers expect a self-service option, and two-thirds attempt to self-service their issue before reaching out to a live agent.


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So, Which One is Right For Your Business?

The bottom line is that every modern business needs VoIP. Not only is it more affordable than a traditional phone system, but it offers advanced call management features, increased mobility, and self-service capabilities that support the demands of modern business communications.

The real question, then, is whether VoIP is enough for you.

For businesses that only use voice calling, migrating to VoIP may be sufficient. Be cautious, though, as all evidence points to the fact that omnichannel services and remote working are the future of modern business communications. Fail to prepare, and you risk harming your internal productivity and ability to meet customer demands.

UCaaS is the best option for remote, hybrid, and globally-dispersed teams who require multiple communication channels, for example if you were looking to hire Python developers from several different locations. If your team needs to be able to collaborate remotely, connect with customers on different channels, and deliver efficient, personalized customer service in alignment with new trends, then UCaaS is the way forward.

So, to settle the "UCaaS vs VoIP" debate, take a good look at your company's communication needs and determine how many channels and collaborative tools you need to succeed.



Jessica Day - Senior Director, Marketing Strategy, Dialpad

Jessica Day 

Jessica Day is the Senior Director for Marketing Strategy at Dialpad, VoIP phone services and modern business communications platform that takes every kind of conversation to the next level-turning conversations into opportunities. Jessica is an expert in collaborating with multifunctional teams to execute and optimize marketing efforts, for both company and client campaigns. Jessica has written for domains such as DSers and Training Industry. Here is her LinkedIn.

Published Tuesday, November 08, 2022 7:32 AM by David Marshall
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